Petrol Price May Retain or Fall Slightly From June 1
What can you expect when you fill up your tank next month? The answer isn’t simple — petrol, diesel, and other fuel prices are moving carefully, with small decreases, slight increases, and important government changes. Let’s explore the changing petrol price, from local updates to global factors, and the government’s planned tax hike.
New Petrol Price
As per the media reports, Petrol could see a small reduction of Rs. 0.60 per litre, and high-speed diesel (HSD) might drop by Rs. 0.28 per litre for the fortnight starting June 1 taking it to the new Rs. 252.03 and Rs. 254.36, respevctively.
At the same time, not all fuels are headed down. Kerosene oil prices are expected to rise by Rs. 0.30 per litre, reaching Rs. 164.96, while light diesel oil (LDO) could increase by Rs. 1.30 per litre. However, these changes depend heavily on the finance ministry’s final decision, so prices might also remain unchanged.
What’s happening globally sheds more light on these trends. Brent crude oil is trading between $64.02 and $64.60 per barrel, while West Texas Intermediate (WTI) crude recently dropped below $61 per barrel, down over 1.5%. This dip follows reports that OPEC+ plans to boost oil output soon, though the scale of this increase is still unclear.
Petroleum Tax Hike Planned
Looking ahead, a major development looms. The Pakistani government plans to increase the Petroleum Development Levy (PDL) to over Rs100 per litre starting July 2025, aligning with IMF conditions under the Extended Fund Facility. This includes a new Rs5 per litre carbon levy on petrol and diesel to address environmental concerns.
Currently, the government levies Rs78.2 per litre on petrol and Rs77.1 per litre on diesel, with retail prices already above Rs254. If these levies rise as planned, fuel prices could approach Rs300 per litre — a significant hike that will impact many.
For middle- and lower-income households, this increase could lead to higher inflation in daily expenses like transportation and food, intensifying economic challenges.
In short, while minor price adjustments may occur next month, the bigger story is the government’s proposed levy hike and ongoing global oil market shifts. Fuel prices remain a crucial indicator of broader economic health and policy directions, making it vital to stay informed as these changes unfold.